Economy
Building Wealth in Stock Market by Capital Appreciation and Dividend Payment
By Emmanuel C Agubuo
The stock market is a device for transferring wealth from the impatient (pessimistic and fearful investor) to the patient (intelligent and daring investor), Warren Buffett.
Success in stock market investment is dependent on the understanding of its intricacies and managing them to your advantage, Emmanuel C Agubuo.
Purpose of Stock Market
The need for companies to raise money and investors to profit from it is the essence of the stock market and that is what keeps it going.
There are three major ways to profit from the capital market.
1 By capital appreciation.
2 Dividend yields.
3 Bonus issue.
The first two are regular, but the third isn’t and it occurs when the company decides to do it.
Now, if you’re a capitalist-minded investor, you can decide to take profits as many times as possible and as you choose, especially if the stock appreciates more than you bought it. What this means in essence is that the capitalist investor decides what he wants and earns.
But a core dividend income investor has no such option(s). His only option is when the company declares dividends or bonus, either once or twice in a year and in rare cases, more.
So, his earnings or profits depend entirely on what the company chooses to give him at a particular time and not on what he decides to earn.
In order to make sure these set of passive investors keep their money with them, companies declare dividends and sometimes, bonus issues so as to make shareholders happy.
But one key question to ask is ‘is dividend income the real deal in stock market investments?’ Well, the answer varies from one investor to the other because each of their investment objective isn’t the same.
However, it is advisable that you do all you can to maximize more profits from the capital market. I believe that’s what brought you into it in the first place. Or is there anything else? You just came to watch others make the big money?
Or are you just satisfied with the peanuts from dividends? Ok, that’s your choice. Everyone is entitled to his or her choice. There’s no problem about that.
Now hear this, dividend payments in stock market investment is a bait. Don’t be caught and don’t be distracted by it. Because if you focus on it as your core means of building wealth through the capital market, it will deter you from maximizing opportunities of share appreciation, which can fetch you over 100 percent yield.
See, dividend payment is a device conceived by stock market inventors (companies) to access and consolidate huge capital almost free of charge or with lesser interest rates or payment, unlike if they had gone to the bank to borrow such huge amount of money.
The companies pay the dividends simply for consolation as to enable them keep the huge funds perpetually. This is one of the reasons you shouldn’t make dividend income your CORE mission in stock market investment. Simply take it whenever it comes, but don’t make it your CORE; that’s what I do.
However, it depends on your age, shrewdness and level of risk taking. But you have to be very smart.
Nevertheless, investing for dividend income yields is a strategy of its own; based on one’s major objective in the stock market. Investing for capital appreciation or gain is a strategy of its own too and everything boils down to individual perception, understanding, shrewdness and preference.
Though, the two can be combined. But for me, the fastest way to build wealth through the stock market is by capital appreciation in the medium to long term horizon. This doesn’t mean you should sell all your holdings at once. You can sell some or in tranches, but leave your core holdings and watch until the price rises to its top most peaks if needs be.
In other words, building wealth through capital appreciation in the stock market is not a sprint. It is a marathon. It is like a relay race. You need to be savvy, patient and persistent.
Theretofore, to profit more from the stock market investment, do all you can to learn the art of investing in it than the act. The profit is made in the arts and not the act.
A word is enough for the wise. See you at the top. Cheers.
Emmanuel C Agubuo is an entrepreneur, an investor in stocks, real estate and a stock market information strategist. He also helps to strategize on better ways to invest in the stock market profitably.
By Adedapo Adesanya
Three bellwether stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.31 per cent on Monday, May 18.
This brought the NASD Unlisted Security Index (NSI) by 54.71 points to 4,133.70 points from 4,188.41 points, and shrank the market capitalisation by N32.73 billion to N2.473 trillion from N2.506 trillion.
Yesterday, FrieslandCampina Wamco Plc contracted by N12.45 to sell at N146.55 per share compared with last Friday’s closing price of N159.00 per share, Central Securities and Clearing System (CSCS) Plc declined by N2.34 to N70.00 per unit from N72.34 per unit, and NASD Plc lost 50 Kobo to trade at N34.50 per share versus N35.00 per share.
The trio overpowered the N5.56 gained Newrest Asl Plc. This stock ended the trading session at N61.15 per unit, in contrast to the previous session’s N55.59 per unit.
During the trading day, the volume of securities traded by investors slid by 56.1 per cent to 514,142 units from 1.2 million units, and the value of securities dropped 29.8 per cent to close at N17.4 million versus N29.8 million, while the number of deals jumped 12.5 per cent to 27 deals from 24 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units traded for N1.9 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
By Adedapo Adesanya
It was a horrible day for the Nigerian Naira in the different segments of the foreign exchange (FX) market on Monday, May 15, as its value further weakened against the United States Dollar.
In the black market window, the Naira lost N5 against the Dollar yesterday to sell for N1,390/$1 compared with the previous value of N1,385/$1, but at the GTBank forex counter, it remained unchanged at N1,383/$1.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), the Nigerian currency depreciated against the greenback by N2.66 or 0.19 per cent to sell for N1,373.70/$1 compared to last Friday’s rate of N1,371.04/$1.
Equally, it fell against the Pound Sterling in the same market segment by N9.05 to trade at N1,839.66/£1 versus N1,830.61/£1, and lost N5.42 on the Euro to close at N1,600.49/€1 versus N1,595.07/€1.
The performance of the local currency during the session indicates early worries despite all signals pointing to stability, amid improved Dollar sales by the Central Bank of Nigeria (CBN), with steady, higher oil receipts to bolster the nation’s reserves.
Activity at the market showed that turnover rose 57.3 per cent to $76.29 million on Monday from $48.49 million posted on Friday.
Over the weekend, S&P raised Nigeria’s credit ratings for the first time since 2012 and highlighted improved FX market liquidity and $10 billion turnover recorded in April 2026 as one of the major gains of the CBN-led FX reforms.
The agency said the liberalisation of the exchange rate has bolstered access to foreign currency and enabled a market-driven exchange-rate environment while supporting investor and consumer confidence.
Meanwhile, the cryptocurrency market was bullish on Monday as investors monitored developments in the Iran conflict and weighed the impact of surging oil prices on inflation and US interest-rate expectations.
Ethereum (ETH) gained 0.7 per cent to trade at $2,134.10, Cardano (ADA) rose by 0.6 per cent to $0.2515, Solana (SOL) expanded by 0.3 per cent to $85.11, Binance Coin (BNB) jumped 0.2 per cent to $643.29, TRON (TRX) increased by 0.03 per cent to $0.3565, and Bitcoin (BTC) advanced by 0.02 per cent to $76,912.12.
On the flip side, Dogecoin (DOGE) slid by 1.5 per cent to $0.1044, and Ripple (XRP) decreased by 0.5 per cent to $1.38, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Dipo Olowookere
A marginal 0.05 per cent loss was recorded by Customs Street on Monday, as sell-offs by market participants remained.
This was driven by the desire of investors to book profits, having witnessed a significant price appreciation on the stocks in their portfolios.
Yesterday, bargain-hunting in the banking space, which resulted in the sector closing 0.17 per cent higher, could not prevent the Nigerian Exchange (NGX) Limited from going down.
Data showed that the consumer goods segment lost 0.26 per cent, the insurance counter depreciated by 0.20 per cent, the industrial goods index shed 0.09 per cent, and the energy industry retreated by 0.03 per cent.
As a result, the All-Share Index (ASI) eased by 126.09 points to 250,204.83 points from 250,330.92 points, and the market capitalisation contracted by N81 billion to N160.363 trillion from N160.444 trillion.
NCR Nigeria and Zichis declined by 9.99 per cent each to sell for N161.20 and N26.49, respectively, Industrial and Medical Gases shrank by 9.93 per cent to N38.10, Sovereign Trust Insurance depreciated by 9.86 per cent to N2.65, and DAAR Communications slipped by 9.78 per cent to N2.03.
On the flip side, Oando gained 10.00 per cent to finish at N51.70, University Press also rose by 10.00 per cent to N5.50, Deap Capital soared by 9.96 per cent to N5.96, May and Baker expanded by 9.94 per cent to N52.00, and Trans-Nationwide Express grew by 9.92 per cent to N7.76.
Yesterday, 800.5 million equities worth N37.1 billion exchanged hands in 87,096 deals compared with the 1.1 billion equities valued at N44.3 billion traded in 65,744 deals last Friday. This showed that the number of deals went up by 32.48 per cent, while the trading volume and value went down by 27.23 per cent and 16.25 per cent, respectively.
The most active stock on the first trading session of this week was UBA with a turnover of 65.0 million units worth N2.8 billion, Fidelity Bank traded 57.3 million units for N1.3 billion, Access Holdings sold 42.3 million units valued at N1.1 billion, DAAR Communications exchanged 36.7 million units for N81.8 million, and Secure Electronic Technology transacted 36.6 million units worth N33.0 million.
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